Opportunity Cost of Natural Gas Subsidies in Bangladesh

Date: April 2014
Type: Papers and Briefs
Series: South Asia Working Papers
Author: Gunatilake, Herath; Raihan, Selim


The paper examines the impact of optimal gas pricing policy—aligning the price with international market price—together with better gas revenue management regime, in which augmented gas revenue is used to invest in physical and social infrastructure. Inflationary pressures from higher energy prices would be completely offset by positive impacts of infrastructure constraint removal. Optimal gas pricing and investment in infrastructure would benefit all sectors of the economy without any adverse effects on the poor.


  • Abstract
  • Introduction
  • Economy-wide Effects of Investing Revenue from Natural Gas
  • Concluding Observations
  • References